Military Retirement Pay Is Fully Exempt from Arkansas Income Tax
All uniformed-services retirement pay has been exempt from Arkansas income tax since tax year 2018, with no rating requirement and no age gate. One trap: if your military exemption comes to $6,000 or more you cannot also claim the general $6,000 employer-plan retirement exemption. Below $6,000, the remainder can be applied against other employer-sponsored retirement income.
Verified August 27, 2026
What this benefit is
All uniformed-services retirement pay has been exempt from Arkansas income tax since tax year 2018, with no rating requirement and no age gate. One trap: if your military exemption comes to $6,000 or more you cannot also claim the general $6,000 employer-plan retirement exemption. Below $6,000, the remainder can be applied against other employer-sponsored retirement income.
What it's worth: 100% of uniformed-services retirement pay exempt from Arkansas income tax
- The exemption has applied since tax year 2018 and covers 100% of uniformed-services retirement pay.
- There is no rating requirement and no age gate.
- If the military exemption is $6,000 or more, the general $6,000 employer-plan retirement exemption cannot ALSO be claimed. This is the part people get wrong.
- Where the military exemption is below $6,000, the remainder of the general exemption may be applied to other employer-sponsored retirement income.
- Survivor benefit recipients are addressed in the department's filing guidance, and the exemption applies per those instructions.
- The saving is your marginal Arkansas rate applied to the exempt amount, so it depends on your bracket.
Who is entitled to it
- You receive military retired pay.
- You file in Arkansas.
Not sure whether that describes you?
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How to claim it
Deadline: With your annual Arkansas return- 1Claim the exemption on your Arkansas return, following the AR1000F or AR1000NR instructions for the year.
- 2Work out whether your military exemption reaches $6,000. If it does, do not also claim the general employer-plan exemption — you cannot have both.
- 3If it is below $6,000, apply the remainder of the general exemption to other employer-sponsored retirement income rather than leaving it unused.
- 4If you receive a survivor benefit, follow the department's filing guidance for it rather than assuming it is treated the same way.
- Form
- Form AR1000F or AR1000NR
- File with
- Arkansas Department of Finance and Administration
- Annual
- Claimed once a year.
Sources
- authority · published policyArkansas DFA — AR1000F and AR1000NR instructions
- operating · published policyArkansas DFA — individual income tax
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.